We have an amazing team here at BlueOrange. Kaspars is on a well deserved vacation, and Krista and our summer intern Renārs do a great job keeping everything in order, while also providing thoughtful and fresh insights into making us a little bit better every day.

Here are some links that they found interesting this week:

Tesla manages to raise $1.8b through junk bonds yielding 5.3%
Earlier this month, Tesla came out with a statement saying that the money required to fund the projected production ramp of its recently released Model 3 is going to be raised through a bond offering. At first, the electric carmaker wanted to raise $1.5 billion, a number that, due to high demand, was later increased to $1.8 billion.

Disney to leave Netflix
Starting 2019, Netflix and chill is going to have to take place without the usual late-night session of Frozen, as the media giant announced its plans to remove its content from Netflix and start its own streaming service.

Reportedly, Disney is also going to launch an ESPN streaming service early next year, which is going to feature sports events from the NHL, MLB, MLS, collegiate sports and Grand Slam tennis.

The shares of Netflix surged more than 10% in after-hours trading on Monday after the on-demand video streaming giant beat analyst expectations for top-line as well as subscriber growth. The amount of international subscribers surpassed the amount of subscribers in the US for the first time, growing by 1.01 million and 4.27 million respectively. Revenue came in at $2.79b, indicating annual growth of 32%. However, Netflix reported negative cash-flow of $608 million, down from negative $423 million reported last quarter.

Netflix keeps on widening the moat when comes to original programming. Now Netflix is not a ‘Warren Buffett stock’, but it has some very salient features that Buffett has sought out in his favourite holdings, namely pricing power. The more people Netflix gets hooked on their shows, the more leverage they have in terms of pricing.